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Articles Posted in commercial lease

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How you can determine if your real estate contract is specific enough to be enforced – what essential terms are required.

Let’s get this out of the way – the only essential terms for a real estate sale contract are the identities of the buyer and seller, the property in question, and the purchase price. Essentially, that is the law in California. Of course, the courts have found ways around the…

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California Commercial Lease – How to Determine if Option to Renew is Not Enforceable

California commercial leases often include options for renewal of the lease beyond the initial term. Option terms can provide the duration of the renewal, and describe the future rent, or provide a mechanism for calculating the rent to be paid. But, frequently commercial lease attorneys encounter leases that are not…

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The Disappearing Sublease – What can happen if the Sublessor files Bankruptcy, and ways to protect the subtenant or assignee.

California commercial tenants sometimes need to sublease their premises, or assign the lease. Without fail, they remain liable to the property owner for the lease, in the event that the subtenant does not perform. Breach of the lease does not automatically terminate it – the owner must exercise its right…

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Option Agreements with other lease or purchase conract attached – when the binding contract is formed.

Option agreements for sale or lease of property often have a form of lease or purchase agreement attached, to be entered on exercising the option. The expectation is that, if the option is exercised, the attached contract will be signed by the parties and govern the transaction. Occasionally the option…

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Notice in a California Commercial Lease – The Lease Language Governs, Most of the Time

In commercial leases the landlord and commercial tenant may agree to notice procedures that differ from those provided in the statutory provisions governing landlord – tenant relations. Residential leases are different, given the Legislature’s long standing concerning with protecting unwary residential tenants, and the swift process of unlawful detainer. The…

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California Commercial Lease Negotiations – The Landlord’s CAM Estimates May Need To Be Accurate, And The Landlord Cannot Raise The Percentage

Commercial tenants entering lease in California are usually required to pay their proportionate share of “common area maintenance,”, or CAM charges. The CAM charges are always characterized as an estimate- at the end of the year the landlord determines the total costs incurred for the year, and then apportions them…

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Jurisdiction of California Courts After the Civil Suit Is Decided – Sometimes It Continues, but There Are Limits

California Courts sometimes reserve jurisdiction over parties or an action after the case has gone to final judgment, for various reasons. Jurisdiction is generally the power to hear and determine the claims of the parties. Some examples of court’s holding on to jurisdiction are to to enforce settlement in an…

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California Commercial landlords have two new disclosure requirements in 2013- Energy Use, and whether the property meets accessability standards

California landlords are faced with a myriad of regulatory requirements for disclosures as well as enforcement of their leases. Two new mandatory disclosures for commercial leases will be required in 2013- past energy use of the building, and whether the premises have been inspected by a “certified access specialist”, and…

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California commercial lease provisions prevents claim for constructive eviction or breach of covenant of quiet enjoyment – the right language saves a landlord.

California real estate law, and often commercial rental agreements, provide the tenant with a right of quiet enjoyment. This means that the landlord promises that during the term of the tenancy no one will disturb the tenant in the tenant’s use and enjoyment of the premises. If the covenant of…

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California commercial landlord and mitigation of damages- rents from later tenants can offset rent owed before the first lease was terminated.

Generally with California commercial properties, when a tenant defaults there is an unlawful detainer, and the landlord is awarded as damages the rent due until the judgment. If the lease contract would have gone for a longer term, the landlord may later sue for the balance of the rent due…

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